JLL Partners has acquired Pioneer Sand Company, Pioneer Landscaping Materials, and related entities from the company’s founders.
Pioneer is a distributor of hardscaping materials offering a range of products, including decorative stone, sand, gravel, mulch, pavers, retaining walls, and other “non-green” landscaping materials, to landscape contractors, commercial accounts and homeowners. Pioneer has 30 retail locations in Colorado and Arizona and sources products from a variety of suppliers, including 12 internally operated rock quarries and sand pits. The company also operates a civil construction excavation division and a railroad tie distribution network. Pioneer is headquartered in Colorado Springs, CO and Gilbert, AZ (www.pioneersand.com).
With the closing of the transaction, Pioneer has hired Michael McGrady as its new Chief Executive Officer. Mr. McGrady has more than three decades of experience in the landscaping and water management industries and most recently was the President of John Deere Water and the Executive Vice President of John Deere Landscapes.
“I am pleased to join Pioneer at such an exciting time in the industry. Since its founding in 1967, Pioneer has become the preeminent supplier of hardscaping solutions in the arid Southwest by focusing on the needs of its diverse customer base,” said Mr. McGrady. “Furthermore, its excavation and railroad ties distribution businesses have market-leading positions and are poised for robust growth. With JLL’s deep building products investing experience and focus on supporting growing business, the company’s management team looks forward to pursuing new opportunities in Pioneer’s core markets as well as new markets.”
JLL Partners invests in companies across a range of manufacturing and service industries. Sectors of specific interest include healthcare, building products, financial services, aerospace, and business services. Since its founding in 1988, the firm has invested approximately $4.4 billion across six funds. JLL Partners is based in New York (www.jllpartners.com).
“We are excited to support Pioneer’s next chapter of growth and believe there is significant opportunity to build on the company’s successful existing platform,” said Eugene Hahn, Managing Director of JLL Partners. “Pioneer is a clear leader in the growing hardscaping market, which will continue to benefit from increasing water scarcity in the sunbelt region as well as the ongoing housing recovery. We are especially excited to be partnering with Michael McGrady, who brings a wealth of industry and operating experience to the company.”
Slate Partners (www.slatepartnersllc.com), a Denver-based investment bank specializing in the building materials and building services sectors, was the financial advisor to Pioneer. Slate Partners was founded in 2014 by its managing partners Aaron Bachik and Jason Munoz who previously led the building materials and services group at Green Manning & Bunch.
Skadden, Arps, Slate, Meagher & Flom acted as legal counsel to JLL Partners. Jennings, Strouss & Salmon acted as legal counsel to Pioneer.
© 2015 PEPD • Private Equity’s Leading News Magazine • 1-6-15
